This bill proposes updates to the current statutes regarding the use of escrow accounts by escrow agents. Under the existing law, escrow agents are restricted to using funds in an escrow account solely for making payments as stipulated in a loan agreement. The new provisions would allow for exceptions where the loan agreement or related documents explicitly state alternative uses for the funds. Specifically, the bill introduces four scenarios where funds may be used for purposes other than those originally outlined in the loan agreement, including provisions for deeds in lieu of foreclosure, settlement negotiations, and addressing accounts in arrears.

Additionally, the bill includes a statement of legislative intent, clarifying that the changes made by this act are intended to be clarifying in nature and do not represent substantive changes to existing law. This aims to ensure that the modifications are understood as enhancements to the current framework rather than a complete overhaul of the regulations governing escrow agents.

Statutes affected:
Introduced Version: 6-834.01
House Engrossed Version: 6-834.01
Senate Engrossed Version: 6-834.01
Chaptered Version: 6-834.01